They have raised their earnings estimates for FY2026 and FY2027 by 3% and 11%, respectively, and, by tweaking their valuation methodology, arrived at a higher target price of $5.50 from $4.50 previously.
With organic growth, an accretive acquisition, and prospects for unlocking value through a spin-off listing, analysts have become more bullish on Hong Leong Asia (HLA).
Natalie Ong, Then Wan Lin and Tay Wee Kuang of CGS International see prospects of higher earnings from the combination of HLA’s China-based powertrain unit, the building materials business, and the accretive acquisition of Yong Tai Loong (YTL).
